+ Most of you must be a bit relieved over last few days movement of market, after long wait we have seen some buying come in, but not much profit was made unless one just bought and held for some time. We will speak about the strategy later that our clients and we used over last two weeks to garner in some decent profits.
+ MFF has had long journey in Indian Stock Market. What was started as just text mail update is now read my hundreds today, we are thankful to you all. Hope you have received the sms on our new mail id, if not please note down the same: firstname.lastname@example.org , till now we have been using the domain of personal name which has been now changed to our companies name. I was amused to find today that marketfastfood domain which was also used by us some time earlier and then now renewed has been bought over by someone and is now up for sale! MFF is a brand now, which cannot be matched just by buying a domain!
+ The buying, which we are seeing amid high volatility, is on account of two reasons, 1. Hope of the big bail out package announced by Obama getting passed. 2. Likely announcements of some tax breaks by the Congress led UPA government in order to woo voters. If one wants a third reason then it’s due to realization by investors that pessimism has been overdone. We may see accumulation at these levels by some smart money but MFF still feels no major breakout will happen till elections. The symptoms were seen today as profit booking also kicked in later in the day.
+ ICICI’s KV Kamath was speaking to a news channel today wherein he said that he feels India is back on track! He of course must be sensing the early signals of a revival. We can argue he may not be fully right, even then, if its just 20% true, it’s a good omen for investors. RBI was making some noise yesterday and MFF feels there is scope for further reduction in interest rates by 200 basis points and we will soon see that happen. Inflation as predicted long back is headed towards 2% and lower.
+ Nifty should find psychological resistance at 3000 and support comes at 2860 – 2830 – 2780. We have been continuously writing that market is expected not to make any major movement. We don’t know how many of you read the articles posted on our website. In our last article published in TIA Digest, also posted in this site under the category “print articles” we had recommended to buy Index Funds.
+ The volatile movements of the Sensex can be used in our favour to make some profits by investing in Index Funds. Index Funds would almost replicate the returns given by the Sensex or Nifty. After posting that article our clients had invested and we too invested at 8600 Sensex levels approximately two weeks earlier. Today at almost 9500 Index we are making almost 8% – 10% returns! Which is quite a decent return over short period of time. MFF views are generally not aggressive and it’s no harm if investors can rely on the views to some extent. One can still invest small amounts in Index funds on every dip, Mutual Fund forms are available for download on this site. You can write to us in case of doubts.
Vivek Karwa +91-98-405-405-75